What is TAS 29 (Financial reporting in hyperinflationary economies)?

Q: What is TAS 29 (Financial reporting in hyperinflationary economies)?

The standard requiring entities whose functional currency is the currency of a hyperinflationary economy to state their financial statements in terms of the purchasing power at the end of the reporting period. Under TAS 29, non-monetary items (inventories, property, plant and equipment, equity) are restated using a general price index, monetary items are not restated, and the gain or loss on the net monetary position is recognised in profit or loss. Comparative amounts are also restated in the measuring unit of the current period. In Turkey, entities applying TFRS began applying TAS 29 from their 2023 financial statements.

Under TAS 29, non-monetary items (inventories, property, plant and equipment, equity) are restated using a general price index, monetary items are not restated, and the gain or loss on the net monetary position is recognised in profit or loss. Comparative amounts are also restated in the measuring unit of the current period.

In Turkey, entities applying TFRS began applying TAS 29 from their 2023 financial statements.

Source: TAS 29

Related terms

Functional currencyThe currency of the primary economic environment in which the entity operates.Inflation adjustment (tax)An adjustment made under tax legislation, when certain conditions are met, to remove the effects of price changes from the financial statements.Deferred taxTax payable or recoverable in future periods, calculated on temporary differences between the carrying amounts of assets and liabilities in the financial statements and their tax bases.Accounting policiesThe specific principles, bases, conventions, rules and practices an entity applies in preparing its financial statements.Amortised costThe amount at which a financial asset or liability is measured at initial recognition, minus principal repayments, plus cumulative amortisation calculated using the effective interest method.AssociateAn entity over which the investor has significant influence but not control or joint control.

Last updated: October 22, 2026 · This definition is for general information only.